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FROM THE OFFICE OF PUBLIC AFFAIRS January 18, 2001LS-1131 The Treasury Department on Thursday released the third edition of a report summarizing the nationwide performance of state-run Capital Access Programs (CAPs). The new statistics show that CAPs lending in 1999 totaled $212 million, and that through June 2000 the cumulative volume of CAPs loans originated climbed to over $1.5 billion. CAPs are lending programs in which participating states and municipalities make contributions to lenders' loan loss reserve pools, allowing lenders to make slightly more challenging small business loans than they would using conventional underwriting. The report, an update of editions released in late 1998 and 1999, details a projected 25 percent growth in CAPs loan volume in 2000 for the 20 states and 2 municipalities that operate these programs. The report also reviews CAPs performance in successfully encouraging lending to minority-owned businesses and businesses in low-to-moderate income communities, and examines the key aspects of the largest state CAPs, including active marketing to banks and adequate state appropriations. "The results of Treasury's survey and the 14-year track record of CAPs confirm that these programs provide an important source of capital for small businesses that may otherwise be unable to obtain financing," said Michael S. Barr, Deputy Assistant Secretary for Community Development Policy. "The fact that new states are adopting CAPs every year signals that these programs provide a cost-efficient and simple way to promote the growth of small businesses." The report features the results of a survey conducted of the following states and municipalities that operate CAPs: Arkansas, California, Colorado, Connecticut, Delaware, Florida, Illinois, Indiana, Massachusetts, Michigan, Minnesota, New Hampshire, New York City, North Carolina, Akron (OH), Oklahoma, Oregon, Pennsylvania, Texas, Vermont, Virginia and Wisconsin. In 2000 and 2001, CAPs were initiated in Hawaii, Louisiana and Maryland. The report is available on the Treasury website at www.treas.gov/press/releases/docs/cap01.pdf. |
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